Financial Data and Key Metrics - Net income grew, with diluted earnings per share up 11% YoY [9] - Fee-based revenue growth was strong, up 15% YoY, offsetting the decline in net interest income [10] - Expenses declined YoY due to lower FDIC and severance expenses, and efficiency initiatives [11] - Average loans declined throughout the year, while average deposits grew from Q4 2023 [12] - The company returned $25 billion of capital to shareholders and repurchased $20 billion of common stock, up 64% YoY [12] Business Line Performance - Credit card business saw strong growth, with over 2.4 million new accounts opened in 2024 and credit card spend up over $17 billion YoY [15] - Auto business announced a multiyear co-branded agreement with Volkswagen and Audi, starting in H1 2024 [16] - Home lending business reduced headcount by 47% and third-party mortgage loan servicing by 28% since early 2023 [17] - Consumer, small, and business banking segment saw growth in net checking accounts, with over 10 billion debit card transactions, up 2% YoY [18][19] - Wealth and Investment Management Premier channel saw $23 billion in net asset inflows, with deposit and investment balances for Premier clients growing 10% YoY [21][22] Market Performance - The U S economy remains strong, with lower inflation and unemployment positioning it well for 2025 [27] - The incoming administration's business-friendly approach to policies and regulation is expected to benefit the economy and clients [28] Strategic Priorities and Industry Competition - The company made significant progress on risk and control work, with six consent orders terminated since 2019 [13][14] - Credit card platform improvements and new product offerings have been well-received, with 11 new cards rolled out since 2021 [15] - The company is focused on diversifying revenue and reducing reliance on net interest income [9] - Investments in technology and digital platforms are ongoing to transform customer service [66] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about the opportunities to drive higher returns by growing revenue and managing expenses [29] - The CEO expressed confidence in the progress made and the momentum building for 2025 [30] - The CFO highlighted solid Q4 results, including net income of $5 1 billion and strong underlying business performance [31] Other Important Information - The company expects net interest income for 2025 to be 1% to 3% higher than 2024, with growth expected in the second half of the year [57] - Noninterest expense for 2025 is expected to be approximately $54 2 billion, with efficiency initiatives driving $2 4 billion in gross expense reductions [65] Q&A Session Summary Question: Deposit expectations and NII outlook [72] - The company expects stabilization of retail deposit volumes and mix, with some absolute growth and no pricing pressure on the consumer side [75][76] Question: Credit card profitability [77] - The company is early in seeing profitability from new credit card products, with expectations for more meaningful contributions over the next year or two [79][80] Question: ROE trajectory post-OCC consent order [84] - The company has rolled out a standard incentive framework across branches, expecting improved performance in new checking growth and credit card accounts [87][88] Question: Expense efficiency and investment priorities [94] - The company sees significant opportunities to drive efficiency and improve client experience through technology and automation [97][98] Question: Loan growth expectations for 2025 [100] - The company anticipates low to mid-single-digit loan growth, with more meaningful growth in the second half of the year [101] Question: Capital and buyback appetite [105] - The company will prioritize organic growth opportunities and return capital to shareholders, with no need to increase CET1 ratio beyond current levels [106][107] Question: Medium-term ROE target and natural return of the business [109] - The company aims for a sustainable ROE of 15%, with multiple paths to achieve this through growth in various business lines [113][114] Question: Drivers for the last mile to 15% ROE [116] - The company expects profitability improvements in credit card and home lending businesses, along with growth in investment banking and wealth management [118][119] Question: Credit card leadership change [128] - The leadership change in the credit card business is a natural progression, with no change in strategy expected [133][134] Question: Rate sensitivity and NII guidance [140] - The company is marginally asset-sensitive, with higher rates being a slight positive to NII estimates [141][142] Question: Trading performance [143] - The company's trading business is smaller and less complex than peers, with disciplined risk appetite [147][148] Question: Auto business strategic shift [150] - The company is not making a strategic shift in auto but is seeing better spreads and investing in capabilities [152][153] Question: Investment securities portfolio repositioning [155] - The company has been disciplined about payback periods for portfolio repositioning, with a 2- to 2 5-year payback period [157] Question: NII ex-markets guidance [159] - The company does not provide NII guidance excluding markets due to sensitivity to short rates [160] Question: Risks beyond geopolitical [163] - The company's biggest risk is cyber, with a focus on risk management and the strength of the U S economy [164][166] Question: Strategic planning post-regulatory issues [168] - The company is focused on organic growth opportunities across its businesses and does not plan to pursue acquisitions [171][172] Question: Operational/cultural constraints and growth mindset [175] - The company is deliberate about business expansion, with a focus on controlled growth and risk framework [178][181]

Earnings Performance - Wells Fargo reported Q4 2024 adjusted EPS of $1.42, beating the Zacks Consensus Estimate of $1.34 and up from $1.29 in the prior-year quarter [1] - Full-year 2024 EPS was $5.37, surpassing the consensus estimate of $5.29 and rising from $4.83 in 2023 [4] - Net income (GAAP basis) for Q4 was $5.08 billion, a 47% increase from the prior-year quarter [3] - Full-year 2024 net income was $19.72 billion, up 3% year-over-year [4] Revenue and Expenses - Q4 total revenues were $20.38 billion, missing the consensus estimate of $20.55 billion and declining 0.5% year-over-year [5] - Full-year 2024 revenues were $82.29 billion, missing the consensus estimate of $82.62 billion and declining 0.4% year-over-year [5] - Non-interest income grew 11% year-over-year to $8.54 billion, driven by venture capital investments, asset-based fees, and investment banking fees [7] - Non-interest expenses declined 12% year-over-year to $13.9 billion, mainly due to lower FDIC assessments and severance expenses [8] Net Interest Income and Margin - Q4 NII was $11.83 billion, down 7% year-over-year, affected by deposit mix, pricing changes, and lower loan balances [6] - Net interest margin declined to 2.70% from 2.92% in the prior-year quarter [6] Credit Quality and Loan Performance - Provision for credit losses was $1.09 billion, down 15% from the prior-year quarter [11] - Net loan charge-offs were $1.21 billion or 0.53% of average loans, down 3.3% year-over-year [12] - Non-performing assets fell 6% year-over-year to $7.94 billion [12] Capital and Profitability Ratios - Tier 1 common equity ratio was 11.1%, down from 11.4% in Q4 2023 [13] - Return on assets improved to 1.05% from 0.72% in the prior-year quarter [14] - Return on equity increased to 11.7% from 7.6% a year ago [14] Loans and Deposits - Total loans increased 0.3% sequentially to $912.7 billion as of Dec 31, 2024 [10] - Total deposits increased 1.6% sequentially to $1.37 trillion as of Dec 31, 2024 [10] Share Repurchase - The company repurchased 57.8 million shares, or $4 billion, of common stock in Q4 2024 [15] Efficiency Ratio - Efficiency ratio improved to 68% from 77% in the prior-year quarter, indicating better profitability [9]

Financial Performance - Wells Fargo reported $20.38 billion in revenue for Q4 2024, a year-over-year decline of 0.5% [1] - EPS for the quarter was $1.42, compared to $1.29 a year ago, representing a 10.1% increase [1] - Revenue missed the Zacks Consensus Estimate by -0.85%, while EPS exceeded expectations by +5.97% [1] Key Metrics Analysis - Average Balance - Total interest-earning assets: $1,756.36 billion, slightly above the $1,754.22 billion estimate [4] - Net interest margin on a taxable-equivalent basis: 2.7%, matching analyst estimates [4] - Return on assets (ROA): 1.1%, in line with analyst expectations [4] - Net loan charge-offs as a % of average total loans (annualized): 0.5%, matching estimates [4] - Return on equity (ROE): 11.7%, outperforming the 10.9% estimate [4] - Book value per common share: $48.85, slightly below the $49.65 estimate [4] - Total nonperforming assets: $7.94 billion, better than the $8.66 billion estimate [4] - Efficiency Ratio: 66%, slightly higher than the 65.1% estimate [4] - Net loan charge-offs: $1.21 billion, better than the $1.23 billion estimate [4] - Total nonaccrual loans: $7.73 billion, better than the $8.51 billion estimate [4] - Allowance for loan losses as a percentage of total loans: 1.6%, matching estimates [4] - Common Equity Tier 1 (CET1) - Standardized Approach: 12.4%, significantly higher than the 11.3% estimate [4] Stock Performance and Market Position - Wells Fargo shares returned +0.5% over the past month, outperforming the Zacks S&P 500 composite's -3.3% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Earnings Performance - Wells Fargo reported quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.34 per share, representing a 5.97% earnings surprise [1] - This compares to earnings of $1.29 per share a year ago [1] - In the previous quarter, the company delivered a 19.69% earnings surprise with $1.52 per share against an estimate of $1.27 [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] Revenue Performance - Wells Fargo posted revenues of $20.38 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.85% [2] - This compares to year-ago revenues of $20.48 billion [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Stock Performance and Outlook - Wells Fargo shares have added about 1.4% since the beginning of the year, outperforming the S&P 500's decline of -0.7% [3] - The current consensus EPS estimate is $1.19 on $20.63 billion in revenues for the coming quarter and $5.57 on $83.77 billion in revenues for the current fiscal year [7] - The estimate revisions trend for Wells Fargo is favorable, translating into a Zacks Rank 1 (Strong Buy) [6] Industry Context - Wells Fargo belongs to the Zacks Financial - Investment Bank industry, which is currently in the top 5% of the 250 plus Zacks industries [8] - The top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Tradeweb Markets (TW), another stock from the same industry, is expected to report quarterly earnings of $0.75 per share, representing a year-over-year change of +17.2% [9] - The consensus EPS estimate for Tradeweb Markets has been revised 1.3% lower over the last 30 days [9] - Tradeweb Markets' revenues are expected to be $456.5 million, up 23.4% from the year-ago quarter [10]

About the Author and Publisher - Oliver Haill has been writing about companies and markets since the early 2000s, with a focus on AIM companies and small caps before transitioning to roles as a section editor and head of research [1] - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience, produced independently by experienced and qualified news journalists [2] - The company has bureaus and studios in key finance hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Expertise and Coverage - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The team delivers news and unique insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Use of Technology - Proactive is a forward-looking and enthusiastic adopter of technology, equipping its human content creators with decades of expertise and experience [4] - The company occasionally uses automation and software tools, including generative AI, but all content is edited and authored by humans in line with best practices for content production and SEO [5]

Wells Fargo (WFC) shares climbed in pre-market trading Wednesday after the bank reported fourth-quarter profit and net interest income that topped analysts' estimates. The lender reported $5.08 billion in net income for the quarter, up from $3.45 billion last year and above analysts' expectations. Revenue lagged estimates at $20.38 billion, down from $20.48 billion a year ago. The bank had been expected to post fourth-quarter net income of $4.83 billion and revenue of $20.53 billion, according to consensus ...

Wells Fargo shares climbed Wednesday after the bank reported better-than-expected earnings and issued strong guidance on net interest income for 2025.Here's what the bank reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Adjusted earnings per share: $1.42 vs. $1.35 expectedRevenue: $20.38 billion versus $20.59 billion expectedNet income of $5.1 billion, or $1.43 per diluted common share, came in 47% higher than the figure from the fourth quarter in the year prior.T ...

Financial Performance - Total revenue for Q4 2024 was $20,378 million, showing no significant change from Q3 2024 and a slight decrease of 0.5% from Q4 2023[4] - Wells Fargo's net income for Q4 2024 was $5,079 million, a decrease of 1% from Q3 2024 and an increase of 47% from Q4 2023[4] - Diluted earnings per common share rose to $1.43, reflecting a 1% increase from Q3 2024 and a 66% increase from Q4 2023[4] - Net income for Q4 2024 was $5,079 million, a 3% increase compared to the previous year[11] - The company reported a total revenue of $82,296 million for the year 2024, a slight decrease from $82,597 million in 2023[11] - Net income for the year ended December 31, 2024, was $19,722 million, down from $19,142 million in 2023, showing a decline in profitability[23] - The company reported a 3% increase in net income applicable to common stock for the year ended December 31, 2024, totaling $18,606 million[61] Income and Expenses - Noninterest expense increased by 6% from Q3 2024 to $13,900 million, and decreased by 12% compared to Q4 2023[4] - Total noninterest expense for 2024 was $54,598 million, a slight decrease of 2% from 2023[11] - Noninterest income for the quarter was $8,542 million, a decrease from $8,676 million in the previous quarter[19] - Total noninterest income for the Consumer Banking and Lending segment was $7,898 million in 2024, a 2% increase from $7,734 million in 2023[27] - Noninterest income in the Wealth and Investment Management segment rose by 12% year-over-year to $11.963 billion, compared to $10.725 billion in 2023[40] Loans and Credit Losses - The provision for credit losses was $1,095 million, a 3% increase from Q3 2024 and a 15% decrease from Q4 2023[4] - Provision for credit losses decreased by 20% year-over-year to $4,334 million[11] - The company reported a net charge-off of $3,546 million for the year ended December 31, 2024, an increase of 27% from $2,784 million in 2023[27] - Total net loan charge-offs for the quarter ended December 31, 2024, were $1,211 million, representing an increase of $100 million from the previous quarter[44] - The allowance for loan losses slightly increased by 1% to $14,183 million from $14,330 million[14] Assets and Liabilities - Total assets as of December 31, 2024, were $1,929,845 million, showing no percentage change from the previous quarter[14] - Total liabilities increased by 1% to $1,748,779 million from $1,737,114 million in the previous quarter[14] - Total equity decreased by 2% to $181,066 million from $185,011 million in the previous quarter[14] - The tangible common equity as of December 31, 2024, was $135.628 billion, down 3% from the previous quarter and down 4% year-over-year[59] Deposits - Average deposits increased by 1% from Q3 2024 to $1,353,836 million, and remained stable compared to Q4 2023[8] - Total deposits increased by 2% quarter-over-quarter to $1,371,804 million, compared to $1,349,646 million[14] - Total deposits increased by 18% year-over-year to $205.077 billion, up from $173.117 billion[39] Capital Ratios - Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.1%, down from 11.3% in Q3 2024[8] - Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.1% as of December 31, 2024, compared to 11.4% a year prior[63] - Total risk-weighted assets (RWAs) under the Standardized Approach were $1,215.8 billion as of December 31, 2024, slightly down from $1,231.7 billion a year earlier[63] Segment Performance - Consumer Banking and Lending segment reported a net interest income of $28,303 million for the year ended December 31, 2024, down 6% from $30,185 million in 2023[27] - Net interest income in the Commercial Banking segment decreased to $2,248 million, down 11% from $2,525 million year-over-year[34] - Total revenue for the Commercial Banking segment declined to $12,778 million, a 5% decrease from $13,449 million year-over-year[34] - Net income for the Corporate and Investment Banking segment was $1.580 billion, a decrease of 21% from the previous quarter but an increase of 14% year-over-year[37] Customer Metrics - Digital active customers increased to 36.0 million, a 3% increase from 34.8 million year-over-year[29] - Debit card purchase volume increased to $131.0 billion, a 3% increase from $126.1 billion year-over-year[29] Trading and Investment - Investment banking fees surged by 62% year-over-year, reaching $2,665 million in 2024[11] - Net gains from trading activities for the quarter ended December 31, 2024, were $950 million, reflecting a 34% decrease from the previous quarter, but a 10% increase year-over-year[56]

As both JPMorgan Chase & Co JPM and Wells Fargo & Co WFC prepare to release their fourth quarter earnings on Wednesday before the market opens, the spotlight's on their technicals. Investors are betting big on both, but only one can come out on top when the numbers drop. Let's take a quick spin through the charts and see who's in the driver's seat ahead of the big reveal.JPM Stock: Strong Bullish MomentumJPM stock is cruising, and it's not just the bull market that's pushing it. Chart created using Benzing ...

In its upcoming report, Wells Fargo (WFC) is predicted by Wall Street analysts to post quarterly earnings of $1.34 per share, reflecting an increase of 3.9% compared to the same period last year. Revenues are forecasted to be $20.49 billion, representing a year-over-year increase of 0.1%.Over the last 30 days, there has been an upward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial ...